New Home Sales Falter For Longest Streak Since 2011

After rebounding in November, December new home sales (delayed by the government shutdown) were expected to tumble, but thanks to a dramatic downward revision in November's data, December's print was +3.7% (against expectations of -8.7%)

November's initial 16.9% surge (the most since 1992) was revised down to just +9.1% MoM, which enabled December's surprise rise...

Note that new home sales remains a month lagged to the pending and existing sales data.

The last 3 months were all revised lower...

Even with the revisions, the combined Nov/Dec data is better than expected.

New home sales down year over year for 4 straight months: longest stretch since 2011

Median home price rebounded from 2 year lows, rising to $318.6K from $303.5K

Sales probably got a lift from improved affordability, with the median sales price down 7.2 percent from a year earlier. The number of homes for sale where construction hadn’t started rose to the highest since 2007, indicating more supply that could hold down prices or push them even lower.